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Pension Risk Transfer

Howden Group Pension Plan insures £230 million in liabilities with buy-in

Howden Group Pension Plan, Redhill, England, insured £230 million ($306 million) in liabilities through a buy-in with Legal & General Assurance Society, said Neil Rogers, is actuarial consultant at Mercer, who advised on the deal.

The pension risk transfer deal is the first buy-in transaction for the pension fund, Mr. Rogers confirmed. The transaction covers all known plan participants and was funded from the pension plan's existing assets, he said. Assets size could not be learned immediately.

"The trustees are delighted to have been able to provide our members with the long-term assurance this transaction affords," said Crawford McLean, chairman of the trustees at the pension fund, in a news release. "We have worked closely with the company over the past few years to improve the plan's funding position to be fully funded."

Mr. McLean added: "This has enabled us to steadily reduce the plan's exposure to uncertain asset returns. Insuring benefits for all members was the next logical step in this process and also removes the plan's exposure to longevity risk."